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Freelance Eng with occasional work in Canada

Freelance Eng with occasional work in Canada

Old May 23rd 2012, 9:02 pm
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Default Freelance Eng with occasional work in Canada

Hi All,
I am an freelance offshore survey worker, I work worldwide and would like to buy a second home (eventually to live) in Canada. If I get the occasional job in Canadian waters will I have to pay Canadian tax etc? My employer is based in Channel Islands (offshore). I dont think I would have to have resident status for a second home.
Would appreciate any advice. Thanks. Chris
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Old May 24th 2012, 1:07 am
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Default Re: Freelance Eng with occasional work in Canada

Anyone can buy property, so no problems in that regard.

Without a legal status here you would not be covered for heathcare costs etc, but you probably knew that anyway.

Owning property here is no advantage should you later wish to become a more permanent resident, the usual channels would apply,Federal PR, Provincial nomination etc etc. as covered in the wiki.

Basically you can come visit and the immigration officer at the border will allow you in for up to 6 months, at their sole discression. If they think you are a risk to overstay they could deny you entry, but frankly its unlikely if you can show you have a life elsewhere to return to and money to fund your stay.
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Old May 24th 2012, 3:09 am
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Default Re: Freelance Eng with occasional work in Canada

Originally Posted by chris2201
...If I get the occasional job in Canadian waters will I have to pay Canadian tax etc?...
Where do you pay tax now? Where do you live now?
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Old May 24th 2012, 8:13 am
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Default Re: Freelance Eng with occasional work in Canada

Thanks Iaink and Jonboye for the replies,

Am paying tax now in uk.

In the uk at the moment we can work 186 days at sea and not pay tax.

Under the uk tax regime , if i worked in canada for a month i am out of uk waters so dont pay UK tax.

My question is that if i have bought a house in Canada and I do a month in Canadian waters would i be liable for tax etc.

I would like to invest in a property here in NL and eventually live here.

I know that if i don't own a property in Canada i am not liable for Canadian tax- it's just this 'second home' thing I'm worried about - would I be liable for tax etc if (in my freelance capacity - if I did the occasional job in Canadian waters.
Cheers. Chris
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Old May 24th 2012, 8:37 am
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Default Re: Freelance Eng with occasional work in Canada

Originally Posted by chris2201
Thanks Iaink and Jonboye for the replies,

Am paying tax now in uk.

In the uk at the moment we can work 186 days at sea and not pay tax.

Under the uk tax regime , if i worked in canada for a month i am out of uk waters so dont pay UK tax.

My question is that if i have bought a house in Canada and I do a month in Canadian waters would i be liable for tax etc.

I would like to invest in a property here in NL and eventually live here.

I know that if i don't own a property in Canada i am not liable for Canadian tax- it's just this 'second home' thing I'm worried about - would I be liable for tax etc if (in my freelance capacity - if I did the occasional job in Canadian waters.
Cheers. Chris
First, as has been pointed out, owning a home does not allow you to live in Canada for extended periods or permanently. You would still be required to qualify through the usual immigration process, the same as everyone else.

Owning a home or not owning a home is not the determining factor for tax residency. Once can still be deemed a tax resident without owning a home, it is ties to Canada that CRA use
http://www.cra-arc.gc.ca/tx/nnrsdnts...sdncy-eng.html
http://www.cra-arc.gc.ca/tx/nnrsdnts.../nnrs-eng.html
http://www.cra-arc.gc.ca/E/pub/tp/it...consolid-e.pdf
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Old May 24th 2012, 8:43 am
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Default Re: Freelance Eng with occasional work in Canada

Originally Posted by chris2201
Hi All,
I am an freelance offshore survey worker, I work worldwide and would like to buy a second home (eventually to live) in Canada. If I get the occasional job in Canadian waters will I have to pay Canadian tax etc? My employer is based in Channel Islands (offshore). I dont think I would have to have resident status for a second home.
Would appreciate any advice. Thanks. Chris
Would you also be applying for a work permit as you would be working in Canada and would a work permit even be issued?

http://www.cic.gc.ca/english/work/index.asp
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Old May 24th 2012, 8:53 am
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Default Re: Freelance Eng with occasional work in Canada

Originally Posted by Former Lancastrian
Would you also be applying for a work permit as you would be working in Canada and would a work permit even be issued?

http://www.cic.gc.ca/english/work/index.asp
If its offshore would it be working "in Canada"?

If he remains employed by his current employer (not canadian), and assigned a role in Canada, would that be working in Canada?

Depending what he does he may not need one anyway (Consultancy etc) even within Canada.

Good point though, one to check out.
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Old May 24th 2012, 9:53 am
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Default Re: Freelance Eng with occasional work in Canada

Originally Posted by iaink
If its offshore would it be working "in Canada"?

If he remains employed by his current employer (not canadian), and assigned a role in Canada, would that be working in Canada?

Depending what he does he may not need one anyway (Consultancy etc) even within Canada.

Good point though, one to check out.
I know under the Customs Act Canada includes its territorial waters so Yes I would consider offshore in territorial waters to be Canada.

Most consultants need a TWP as they are being employed by the Canadian company that contracted their services (very complicated) to explain fully.

What type of work is being done?

Overview
The Regulations specify that the worker class is a class of persons who may become temporary residents. A worker may be authorized to work without a work permit R186, or may be authorized to work by the issuance of a work permit pursuant to Part 11 of the Regulations.
Definition of ―Work‖ [R2]
―Work‖ is defined in the Regulations as an activity for which wages are paid or commission is earned, or that competes directly with activities of Canadian citizens or permanent residents in the Canadian labour market.
― Wages or commission‖
This includes salary or wages paid by an employer to an employee, remuneration or commission received for fulfilling a service contract, or any other situation where a foreign national receives payment for performing a service.
What is an activity that ―competes directly‖?
Officers should consider whether there is entry into the labour market. Questions to consider:
 Will they be doing an activity that a Canadian or permanent resident should really have an opportunity to do?
 Will they be engaging in a business activity that is competitive in the marketplace?

Where a Canadian employer has directly contracted for services from a foreign company, the employee of the foreign company performing the services for the Canadian company requires a work permit.
This situation arises most often in the context of NAFTA. The service provider is not to be considered a business visitor simply because they are not directly receiving remuneration from a Canadian source. Since there is a contract between the Canadian company and the foreign worker‘s employer there is a labour market entry. Since that foreign employer is receiving payment for the service that is being provided, it is deemed that the worker is receiving payment from a Canadian source. Consequently, the worker cannot receive consideration as a business visitor.
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Old May 24th 2012, 9:59 am
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Default Re: Freelance Eng with occasional work in Canada

Thanks Guys,
I am on a 3 month work permit at the moment, all legit and above board. I still am based in the Uk. What I would like to do in future is live here between my overseas jobs and once a year maybe, work for the canadian company I am working for now, ie whilst the weather is workable out on the Grand Banks. Complicated I know.
Chris
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Old May 24th 2012, 10:01 am
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Default Re: Freelance Eng with occasional work in Canada

Tax treaty ...

Article 27A
Miscellaneous Rules Applicable to Certain Offshore Activities

1. The provisions of this Article shall apply notwithstanding any other provision of this Convention.

2. A person who is a resident of a Contracting State and carries on activities in the other Contracting State in connection with the exploration or exploitation of the sea bed and sub-soil and their natural resources situated in that other Contracting State shall, subject to paragraph 3 of this Article, be deemed to be carrying on a business in that other Contracting State through a permanent establishment situated therein.

3. The provisions of paragraph 2 of this Article shall not apply where the activities referred to therein are carried on for a period or periods not exceeding in the aggregate 30 days in any 12 month period. For the purposes of this paragraph:

(a) where a person carrying on activities referred to in paragraph 2 of this Article is associated with an enterprise carrying on substantially similar activities, that person shall be deemed to be carrying on those substantially similar activities of the enterprise with which he is associated, in addition to his own activities;

(b) two enterprises shall be deemed to be associated if one enterprise participates directly or indirectly in the management or control of the other enterprise or if the same persons participate directly or indirectly in the management or control of both enterprises.

4. Salaries, wages and similar remuneration derived by a resident of a Contracting State in respect of an employment connected with the exploration or exploitation of the sea bed and sub-soil and their natural resources situated in the other Contracting State may, to the extent that the duties are performed offshore in that other Contracting State, be taxed in that other Contracting State.
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Old May 24th 2012, 10:07 am
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Default Re: Freelance Eng with occasional work in Canada

So it looks like you will be OK as long as it is less than 30 days in any 12 month period. Having a house in Canada is definitely going to complicate things if the CRA decide to investigate, especially if you are taxed as a non-resident in the UK.

If you are buying for investment purposes I would get a tenant in ASAP to make sure the home is not available for your use.
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Old May 24th 2012, 10:18 am
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Default Re: Freelance Eng with occasional work in Canada

Thanks Aviator,Iaink, Former Lancastian,
Very helpful thanks for your efforts. I believe I can own a home here and come in between my overseas jobs on a tourist visa and if I am going to work for the Canadian company for a short while , go out and come back in on the TWP.
Most of my work is overseas.
By the way Former Lancastrian, I am from Bury and grew up in Newhey near Rochdale, where are you from?
Chris
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Old May 24th 2012, 1:43 pm
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Default Re: Freelance Eng with occasional work in Canada

Originally Posted by chris2201
Thanks Aviator,Iaink, Former Lancastian,
Very helpful thanks for your efforts. I believe I can own a home here and come in between my overseas jobs on a tourist visa and if I am going to work for the Canadian company for a short while , go out and come back in on the TWP.
Most of my work is overseas.
By the way Former Lancastrian, I am from Bury and grew up in Newhey near Rochdale, where are you from?
Chris
Chorley which is Lancashire whereas Bury used to be but now part of Greater Manchester
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